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In this August 1987, file photo, shows Donald Trump, the real estate mogul, entrepreneur, and billionaire when he spent most of his day attending board meetings in which he managed the construction of his buildings in his offices in New York City.

What to Know

NY state tax officials are investigating allegations detailed in a NYT investigation into Donald Trump and his family's business dealings.

Millions of dollars were transferred from Fred Trump's real estate empire to his children without paying the appropriate taxes.

"The Tax Department is reviewing the allegations in the NYT article and is vigorously pursuing all appropriate avenues of investigation"

New York state tax officials are investigating allegations detailed in an exhaustive New York Times investigation into Donald Trump and his family's business dealings.

The Times reported on Tuesday that Trump and his family committed "instances of outright fraud" in order to transfer millions of dollars from the real estate empire of the president's father, Fred Trump, to his children without paying the appropriate taxes.

"The Tax Department is reviewing the allegations in the NYT article and is vigorously pursuing all appropriate avenues of investigation," a spokesman from the New York State Department of Taxation and Finance said in an email to CNBC.

Representatives from the White House and the Trump Organization did not return requests for comment.

In a statement to the Times, Trump lawyer Charles Harder denied any allegations of fraud and tax evasion, saying "the facts upon which The Times bases its allegations are extremely inaccurate."

White House press secretary Sarah Huckabee Sanders, in her response to the Times, backed up Trump's claims about his wealth, repeating the story that he took a $1 million loan from his father and paid it back. Trump said numerous times as a presidential candidate that he had received the "very small" $1 million loan from his father. But the newspaper's investigation found that Trump had actually been lent at least $60.7 million.

The article claims the Trump family committed "instances of outright fraud," with the president himself receiving today's equivalent of $413 million from the real estate holdings of his father, the Times reported while citing 100,000 documents and interviews with former family associates.

Meanwhile, the state tax department already is investigating the president's charity, the Trump Foundation. The president's former personal lawyer, Michael Cohen, has also been caught up in the tax department probe as he was subpoenaed by investigators in August.

The probe came on the heels of a lawsuit by New York state Attorney General Barbara Underwood against the foundation, as well as Trump himself, claiming that he broke state and federal law by mismanaging the charity.